The State of the Cloud 2015: Supply Chain Adopters Reaping ROI Rewards

Submitted by Jeff Byma on Tue, 2015-05-19 15:35

Submitted on Tue, 2015-05-19

By irms|WM Warehouse Management

Today, 9 out of 10 organizations are using at least one cloud application.

Proven cloud solutions are central to corporate strategies by cutting costs, improving IT performance and gaining an edge through enhanced analytics. The numbers – from adoption and strategy to cost savings and ROI – tell the story of its effectiveness, yet a recent DC Velocity survey indicates that only 8% of warehouse management systems are utilizing cloud platforms. For supply chains, embracing the cloud brings cost benefits and exciting opportunities to accelerate their growth.

The State of the Cloud: Facts and Stats

Cloud software has shifted security perceptions and fears, comforted the non-tech savvy, and proven exceedingly successful along the way. Here are the top facts and stats you should know about cloud software today:

Nearly 90 percent of businesses have adopted the cloud in some capacity. A 2014 IDG Cloud Computing Study found that cloud investments have increased by 19% in large-scale enterprises spending on average $3.3M a year. It also found that in 2015, 24% of IT budgets will be allocated to cloud solutions.

Infographic: Top Cloud Software Facts 2015

Cloud Adoption Facts:

56% of enterprises are still identifying IT operations that are candidates for cloud hosting

The three biggest disconnects holding organizations from going to the cloud include security (61%), integration challenges (46%) and information governance (35%)

The three most common departments funding cloud initiatives outside of IT are Marketing (45%), Sales (43%) and Human Resources (40%)

Investment in the cloud is a critical topic in boardrooms, gaining the support of finance executives who regard it as essential to a successful organizational strategy. More specifically, the hybrid approach to cloud is a growing preference. A recent RightScale survey found that 82 percent of enterprises reported a multi-cloud strategy as compared to 74 percent in 2014.

Cloud Strategy Facts:

76% of senior finance executives say that the cloud is crucial to their organization’s strategies.

50% of IT professionals rank security as a top reason for migrating applications to the cloud.

85% of cloud users are confident in their provider’s ability to provide a secure environment.

39% transitioned to a cloud application so they could get up and running

26% of IT budgets are dedicated to funding cloud efforts

49% of cloud budgets are allocated to SaaS-based applications

43% of supply chain cloud users said they were currently engaging in big data analysis

A standout benefit of cloud usage is achieving clear ROI. In fact, more than half of respondents of a recent DC Velocity surveyreported reaching ROI at a faster rate while using a cloud application.

Cloud ROI Facts:

84% of CIOs report that they have cut application costs by moving to the cloud

70% of companies reinvesting savings back into their business as a result moving to the cloud.

94% of SMB cloud adopters report that they have experienced security benefits since moving to the cloud

50% of cloud users have reduced their IT spend by 25%

Companies who move to the cloud save, on average, 21% per year.

Companies that use the cloud to spend 25% less on personnel

Supply Chains: Cloud Disruption is Coming

"Cloud is the new style of elastically scalable, self-service computing and both internal applications and external applications will be built on this new style.”

- Gartner

Named one of the top technology trends for 2015 by Gartner, the cloud is the new standard for application development. By 2017, Gartner expects adoption to hit $250 billion, with the worldwide software as a service (SaaS) market growing at an astounding growth rate of 20.2 percent every year.

Within supply chains, the mass adoption of cloud infrastructure and applications will completely disrupt the industry over the next five years. Vast new opportunities to create hyper-efficient operations and connect multiple real-time data sources will create new value-added services for customers looking to gain a competitive edge. Aggressive, flexible, and innovative organizations will find themselves in a position to over-service new clients and upend entrenched competition. The way data is managed and processed within their organization will be critical to accelerating the growth of their business.

Curious about how to get started researching the best way to utilize the cloud in your warehouse? Check out our Cloud Warehouse Management System Buyer’s Guide or register for a 45-minute product tour and see our enterprise cloud warehouse management system live.